1. 1 APNIC Membership Fees APNIC 21 – Annual Member Meeting Perth, Australia 3 March 2006

2. 2 What’s coming up… Background Fee structure principles Example (candidate) fee structure Impact Implementation Discussion

3. 3 Annual financial results

4. 4 APNIC’s new activities in recent years ICANN meetings and fees –Substantial expense item since 1999 MyAPNIC –Major service platform, under ongoing development Root servers –19 servers deployed in AP region Research and development –AS numbers, resource certification, resource projections, … Training –Increased course content, e-learning etc Meetings –Participation mechanisms: transcription, web/audio/podcast, … Information and outreach –APster, website, educational materials WSIS, IGF, other “political” demands –Unpredictable in future years

5. 5 Background Current fee structure established 1996 –Optional tier selection Small, Medium, Large –Annual fees USD 2500, 5000, 10000 per annum –NIR member fees USD 1000 per annum per member Some adjustments –NIR per-address fees (1997) –Mandatory tier selection (1999) –Additional tiers (1999, 2001) Fee structure problems –Recent NIR discussions

6. 6 Current member fee structure Annual fee calculation –Annual assessment of address space holdings –Annual fee is fixed for 1 year from renewal Prefix (v4)Prefix (v6)TierAnnual >/10>/23Extra Large40000 1023Very Large20000 1326Large10000 1629Medium5000 1932Small2500 2235Very small1250

7. 7 Current member fee structure – NIRs Annual fees paid by NIRs but not by their members –Based on total of NIR address holdings “Per address” fees –Extra large:$0.02 per address –Small:$0.15 per address –Fee paid once only, for each allocation to NIR –Allocation contributes to NIR tier assessment No fees charged “per NIR member”

8. 8 Rationale Overall revenue maintenance –APNIC revenues should be predictable –Mitigate impact of new NIRs forming Revenue adjustment –For effects of inflation and foreign exchange –Plan to increase revenue by approx 15% over expectations of current structure Annual fee calculation –Base annual fees on address holdings –Reflecting size of organisation and capacity to pay

9. 9 Rationale Fairness – Small vs large members –Effective cost for small and large ISPs Fairness – regular vs NIR member –Consistent cost recovery for regular and NIR members IPv4 PrefixAddressesAnnual Fee Effective cost/addr 2040962500$0.610 16655365000$0.076 12104857620000$0.019 81677721640000$0.002

10. 10 Rationale NIR fees –NIR member fees based on regular fee structure –With agreed discount in recognition of NIR services and costs Voting –Members of NIRs should be entitled to vote –Voting entitlement proportional to fee contribution

11. 11 Fee structure framework Current fee structure parameters –Minimum fee level (currently $1250) –Fee increment (x2 per tier) –Minimum address space (up to /22) –Address space increment (3 bits per tier) Prefix (v4)TierAnnual >/10Extra Large40000 10Very Large20000 13Large10000 16Medium5000 19Small2500 22Very small1250

12. 12 New fee structure – an example Minimum fee level: $360 Fee increment: x2 per tier Minimum tier: up to /24 Address space increment: 2 bits per tier Prefix (v4)TierMember 14F11520 16E5760 18D2880 20C1440 22B720 24A360

13. 13 New fee structure – an example Prefix (v4)TierAnnual fee 6J184320 8I92160 10H46080 12G23040 14F11520 16E5760 18D2880 20C1440 22B720 24A360

14. 14 Impact assessment Impact of any fee structure decision must be considered Individual impact on APNIC members –Regular members –NIRs –Members of NIRs Impact on APNIC budget –Projected revenues –Estimates only

15. 15 Impact – regular members PrefixCountExampleCurrentDifference 6318432040000144320 7118432040000144320 84921604000052160 90921604000052160 100460802000026080 115460802000026080 121523040200003040 13 230401000013040 142211520100001520 153011520100001520 164957605000760 175157605000760 188928805000-2120 1924428802500380 2026914402500-1060 2114114402500-1060 22697201250-530 23597201250-530 24983601250-890

16. 16 Impact – NIRs NIRABCDEFGHITotal APJII 3322 37 CNNIC 23325141041 89 JPNIC937750191042 174 KRNIC 1415823 134 TWNIC 16314 1 16 VNNIC217 311 15 Total1181609547271241365 NIRABCDEFGHITotal APJII 44880544010880 61200 CNNIC 13604488068000761601088008704043520 429760 JPNIC 3060204010472013600010336010880087040 632060 KRNIC 680544040800435202176065280 87040 264520 TWNIC 6808160 544043520 109480 VNNIC 680 9520 163201088021760 59840 Total37405440217600258400255680293760261120174080870401556860 Annual fees for members of NIRs, without discount applied.

17. 17 Impact – APNIC budget CurrentExampleDifference NIRs 70000077843011% Members4232500483336014%

18. 18 Discussion questions What should the parameters be? –Overall revenue expectations –Parameters fixed or variable? –Variable in accordance with budget? NIR discount –How big should the discount be? –Same discount for all NIRs? Recognition of NIR fees already paid? Gradual introduction? –Over 1 or more years, to control budget impact

19. 19 Next steps… Continue discussion –Mailing list: wg-apnic-fees Report at APNIC 22 Proposal in future?